We filed the lien thru Levelset in April 2020 on the Cambria Hotel project in GA. We have gotten paid a good portion since that time, but there is still an outstanding balance that the GC owes us in the amount of $11,400.23. The GC has become nonresponsive. What can be done to collect our remaining balance?
The first question is whether there is a bond. That may solve your problem. Regarding your lien, so long as your lien was timely filed, in proper form and you sent the 2-day notice, you can always file suit to perfect your lien. In fact, you are required to file suit within 1 year of filing the lien in order to perfect it. If you fail to timely file suit (and the notice of suit), your lien will no longer be enforceable. While it appears you still have some time, you can alway go ahead and file now. However, be aware that because of COVID many courts are not conducting in-person trials or hearings, so the process has really slowed down.
You could place the delinquent balance for collection with a certified commercial collection agency who is licensed and bonded to collect in GA and an active member of Commercial Collection Agencies of America CCAofA. These agencies can offer to collect the account on a contingency fee bases so you are not having to throw new money after an old debt. Depending on your contact sometimes the cost can be added to the debt to reduce your cost to collect. For a free quote or referral to a list of these agencies just email srauch@rauchmilliken.com Best regards in getting your money, Steve
You should make a demand for payment of the balance, and make it clear that you are going to file a lawsuit to perfect your lien if payment is not made. You have one year from the date you filed your lien to file a lawsuit on the lien. Please let me know if you need further help.
Melinda, call me direct at 800-955-3989 or email the bill to me at srauch@rauchmilliken.com and I will get you the quote for suit. Best regards, Steve
The costs will be a combination of attorney's fees for time and filing fees to the Court. The amount of time will depend upon how much time is required to assemble and compile the information. Different attorneys charge different hourly rates for their services too. The filing fees will depend upon the Court. As far as finding an attorney this site has many fine attorneys, but the State Bar also has an attorney referral service.
Generally, there are a few steps that can be taken to force payment once a mechanics lien has been filed. If your customer was originally open to negotiating or paying down the debt, but has become non-responsive - reminding them (and the project owner) of the stakes at play could be useful. Sending a Notice of Intent to Foreclose can help remind the customer and property owner that, if the debt remains unpaid, it could result in litigation or even the loss of the property. And, threatening to bring other legal claims - like breach of contract , a claim under the GA prompt payment laws , etc. - could help to up the stakes, as well. Finally, note that enforcing the lien could be an option, as well. Alternatively, using a collections agency might be an option.
This article should be useful to you: The 4 Steps to Take After Filing a Mechanics Lien. This article might be helpful, too: After Partial Payment, What Should You Do With Your Mechanics Lien?